CA ranks 49th in business climate -- and budget solutions

Not looking good.....keep your powder dry.

Mike

               Director of Public Affairs
               Reason Foundation

Listening to the major media, you would think that the budget crisis is
because a group of lawmakers refuse to vote for a tax increase. Some
have said that if we scrapped the 2/3-vote requirement for taxes, the
problem would go away.

That is the equivalent of blaming the family for a gambling addict's
problems. Since they refuse to give him money to burn, he must hawk his
personal possessions and waste his paycheck to feed the habit. If they
only gave him more money, the problem would go away. Right?

Simply put, higher taxes cannot be part of the budget solution because
underlying California's budget crisis is a "Competitiveness Crisis". An
economic crisis that is getting worse, not better. An economic crisis
that more taxes will only exacerbate.

That becomes clearer each day.

We have already had too many companies like Buck Knives leave
California--companies lured away to states with more attractive
regulatory and tax structures, better education, stronger
infrastructure, better and more affordable workers comp. and healthcare.

We have watched California cities universally slide down Forbes
Magazine's list of "best cities for business."

We have heard too many other governors say that California government is
the centerpiece of their own state's business development strategy.

Today I read the nonpartisan Tax Foundation's new index of state
business taxes (http://www.taxfoundation.org/bp41.pdf) and it was
equally troubling.

Wannna guess how California did? We ranked an embarrassing 49th.

But, hey, we can always cherry-pick a few companies from Mississippi,
right?